We have audited the accompany in 5 Standalone Indian Accounting Standard ( Ind AS ) financial statements ol Veritas (India) Limited (' the Company"), which comprise the Balance Sheet as at March 31, 2024, the Statement ol Profit and Loss (including Other Comprehensive Income), the Statement ol Changes in Equity and the Statement of Cash flows for the year ended on that date, and notes to the financial statements, including a summary of the significant accounting policies and other explanatory information (hereinafter referred to as "the standalone financial statements ).
In our opinion and to the best ol our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (“the Act") in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, ol the state of affairs of the Company as at March 31,2024, its prof i l and other comprehensive income, changes in equity and its cashflows tor the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing specified under section 143(10) of the Act (“the SAs"), Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the Standalone Financial Statements section ol our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (the 1CAI ) together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI s Code ol Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide? a basis for our opinion on the standalone financial statements.
limp lias is of Matter
Wo draw attention to Note to the standalone financial statements, which explains the fact that the Company through its subsidiary, Veritas Poly^ehem Private Limited, has initiated a setup of an integrated manufacturing complexat Dighi Port in thestateof Maharashtra, The project is presently financed by the Company and would he suitably finance subsequently through appropriate means at appropriate time.
Our opinion is not modified in respect ol above matters.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most Significance in our audit ol the standalone financial statements of the current period. These matters wore addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined that there are no Ley audit matters to communicate in our report.
Information Other than the Standalone Financial Statements and Auditors' Report Thereon
Tlio Company s Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Management Discussion and Analysis, Directors Report including Annoxures to Directors Report, Corporate Governance and Shareholders Information, but does not include the standalone financial statements and our auditors report thereon. I he Other information as above is expected to be made available to us after the date of this Auditors report.
Our opinion on the standalone financial statements does not cover the other information and we will not express any form ol assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to redid the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during the course of our audit, or otherwise appears to he materially misstated. When we read the other information, i( we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.
Management s Responsibility for the Standalone financial Statements
The Company s Board ol Directors is responsible lor tire matters stated in section 134(D) of the Act with respect to tke preparation ol these standalone financial statements that give a true and fair view of the financial position, financial performance, total comprehensive income, changes in equity and cask flows of tke Company in accordance witk tke Ind AS and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance ol adequate internal financial controls, tbal were operating ellectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for assessing the Company s ability to continue as agoing concern, disclosing, as applicable, matters related to going concern and using the going Concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Tire Board of Directors are also responsible for overseeing tke Company's financial reporting process,
Auditor s Responsibilities for tke Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an audi tor s report that includes our opinion. Reasonable assurance is a high level ol assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence tbe economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism, throughout the audit. We also;
* Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design andperform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
* Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(l) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
* Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures mode by management.
* Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors report. However, future events or conditions may cause the Company to cease to continue as a going concern.
* Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Wecommunicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related saleguards,
From the matters communicated with those charged with governance, we determine tliose matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report
unless low or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not he communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2020 ('the Order'), issued by the
Central Government of India i n terms of section 143(11) of the Act, we give in the Annexure A, a
statement on the matters specified in paragraph 3 and 4 of the Order, to the extent applicable,
2, As required by Section 143(3) of the Act, based on our audit, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of cor audit.
b) In our opin ion, proper boohs of account as required by law have been kept by the Company so far os it appears from our examination of those books and proper returns adequate for the purposes of our audit have been received from branches not visited by us.
c) The Balance Sheet, the Statement of ) rofit and Loss (including Other Comprehensive Income), Statement of Changes in Equity and the Statemen t of Cash Flow dealt with by this Report are in agreement with the relevant books of account.
d) In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements comply with the Indian Accounting Standards specified under section 133 of the Act, read with the relevant rules thereunder,
e) On the basis of written representations received from the Directors as on March 31,2024 and token on record by the Board of Directors, in its meeting held on April 03,2023, none of the directors is disqualified os on March 31,2024, from being appointed as a director in terms of Section 164 (2) of the Act;
f) The modification/s relating to maintenance of accounts and other matters connected therewith, are stated fn paragraph (b) above and paragraph (i)(f) below,
g) With respect to the adequacy of the interna! financial controls with reference to hid AS Financial Statements of the Company and the operating effectiveness of such controls, refer to our separate report in Annexure B , 1 'urther, our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company’s internal financial controls with reference to the standalone financial statements;
h) As required by Section 1Q7(16) of the Act, ill our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to i ts directors during the year is in accordance with the provisions of section 197 of the Act.
i) with respect to tire other matters to be? included iu the Auditor s Report in accordance wi Hi Ruk 11
ol tin? Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our inlormattbn
and according to tin? explanations given to us:
a. tlie Company lias no pending litigations except as disclosed in notes to account.
b. die Company did not Lave any long-term contracts including derivative contracts lor wbicli tliore wore any material foreseeable losses.
c. there lias been no delay In translerriug amounts, required to be transferred, to the Investor, Education and Protection Fund by tke Company.
d. In respect of Ru le 11(e) of tke Companies (Audit and Auditors) Rules, 2014,
i. Tke management has represented that, to the best of its knowledge and belief, no funds (which are material either individually or In the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other persou(s) or entity(ies), including foreign entities ("Intermediaries ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company { Ultimate Beneficiaries ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
ii. Further, the management has represented that, no funds (which are material either individually or in the aggregate) have been received by tbe company from any person(s) or entity (ies), including foreign entities ( Funding Parties ), with the understanding, whether recorded in writing or otherwise, that the company shall, whether, directly or indirectly, loud or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ( Ultimate Beneficiaries ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
iii. Based on such audit procedures that were considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-claufle (a) and (b) above contain any material miss tatement.
e. The final dividend paid by the Company during the year in respect of the same declared for the previous year is in accordance with section 123 of the Companies Act 2013 to the extent it applies to payment of dividend. As stated in notes to the financial statements, the Board of Directors of the Company have proposed final dividend for the year which is Snbject to the approval ol the members at the ensuing Annual General Meeting, Tke dividend declared is in accordance with section 123 ol the Act to the extent it applies to declaration ol dividend,
1, Based on our examination, the Company has used accounting software customized [ ally F.RP.9 lor maintaining its Looks ol account lor the financial year ended Mat"ch 31,2024 which does have a feature of recording audit trail (edit log) as per requirement.
rite software only captures the name of user who has clone the last modification of the transaction hut it does not captures changes to each and every transaction of the hooks of accounts stating who, when and what changes are being made;
In the absence of the details as prescribed we are unable to comment whether audit trail feature of the said software was enabled and operated throughout the year for all relevant transactions recorded in the software or whether there were any instances of the audit trail feature been tampered wi th."
As proviso to Rule 3(1) of the Companies (Accou n Is) Rules, 2014 is applicable from April 1/2023, reporting under Rule 11 (g) of the Companies (Audit and Auditors) Rules, 2014 on preservation of audit trail as per the statutory requirements for record retention is not applicable for the year end ed March 31,2024.
For SHABBIR & RITA ASSOCIATES LLP
Chartered Accountants
Firm s Registration No 10Q420W /4mSs
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S' Partner
Membership No, 039805 l JOIN: 24039865BKDITHJ6756
Place ol Signature: Mumbai
Date: 29/05/2024
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